Traditional Firms Face High RWA Tokenization Costs

Many traditional companies seeking to launch RWA tokenization projects encounter substantial expenses. A single RWA issuance in Hong Kong typically costs ¥3–6 million, covering legal compliance (¥100–200 k), smart contract development and security audits (¥500–800 k), licensed broker underwriting fees (¥2–3 million), fundraising costs (2–5 % of capital raised), QFLP channel fees (1 %), and marketing. Long-term strategies demand additional licensing, such as Type 1 securities licenses (over ¥1.5 million) and VASP licenses (tens of millions), plus ongoing audit, legal, and staffing costs. Suitable assets for tokenization are standardized, highly liquid products like money market funds or US Treasuries, often using a “dual-yield” model combining base returns with token incentives. Key challenges include immature blockchain infrastructure (oracle reliance risks), a shortage of hybrid TradFi-DeFi expertise, and the absence of local on-chain distribution channels in Asia, forcing reliance on expensive offline brokers. While RWA tokenization offers benefits—global price discovery, 24/7 liquidity, composability, and faster issuance—it remains a complex overlay requiring balance between business models, compliance, and technology. Traders should note that high RWA tokenization costs and structural bottlenecks may slow large-scale adoption despite strong theoretical advantages.